Value of Taxable Supply – Sec 15
- Value of supply of goods or services or both shall be the ‘Transaction Value’, where
- Supplier and recipient of supply are unrelated
- Price is actually paid / payable – AND price is the sole consideration for the supply
Explanation to Section 15 of the CGST Act deems the persons below to be “related persons”:
- Officers / Directors of one another’s business
- Partners in business
- Employer – employee
- A person directly / indirectly owns / controls / holds 25% of shares of both the persons
- One directly / indirectly controls the other
- Both are directly / indirectly controlled by a third person
- Together, they directly / indirectly control a third person
- Members of the same family
- Sole agent / distributor / concessionaire of the other